SMALL BUSINESS INSURANCE & RISK MANAGEMENT GUIDE

The following is a list of helpfull publications from the Small Business Administration.  I am attaching a copy of the SMALL BUSINESS INSURANCE & RISK MANAGEMENT GUIDE.  You might download any of the other publications at the SBA website, sba.gov

 

1. PROBLEMS IN MANAGING A FAMILY-OWNED BUSINESS MP-3:   Specific problems exist when attempting to make a family-owned business successful. This publication offers suggestions on how to overcome these difficulties.

2. BUSINESS PLAN FOR SMALL MANUFACTURERS MP-4:   Designed to help an owner/manager of a small manufacturing firm, this publication covers all the basic information necessary to develop an effective business plan.

3. BUSINESS PLAN FOR SMALL CONSTRUCTION FIRMS MP-5:   This publication is designed to help an owner/manager of a small construction company pull together the resources to develop a business plan.

4. PLANNING AND GOAL SETTING FOR SMALL BUSINESS MP-6:   Learn proven management techniques to help you plan for success.

5. BUSINESS PLAN FOR THE SMALL RETAILER MP-9:   Business plans are essential road maps for success. Learn how to develop a business plan for a retail business.

 6. BUSINESS PLAN FOR SMALL SERVICE FIRMS MP-11:   Outlines the key points to be included in the business plan of a small service firm.

7. CHECK-LIST FOR GOING INTO BUSINESS MP-12:   This is a must if you’re thinking about starting a business. It highlights the important factors you should know in reaching a decision to start your own business.

9. COMPUTERIZING YOUR BUSINESS MP-14: Helps you forecast your computer needs, evaluate the alternatives and select the right computer system for your business.

10. BUSINESS PLAN FOR HOME-BASED BUSINESS MP-15:  Provides a comprehensive approach to developing a business plan for a home-based business.

 12. INSURANCE OPTIONS FOR BUSINESS CONTINUATION PLANNING MP-20:  This publication discusses the life insurance needs of a small business owner and how important business life insurance is when planning for the future of business.

13. INTRODUCTION TO STRATEGIC PLANNING MP-21:   This best seller helps you develop a strategic action plan for your small business.

14. INVENTORY MANAGEMENT MP-22:  Discusses the purpose of inventory management, types of inventories, record keeping and forecasting inventory levels.

  15. SELECTING THE LEGAL STRUCTURE FOR YOUR BUSINESS MP-25:   Discusses the various legal structures that a small business can use in setting up operations. It identifies types of legal structures and the advantages and disadvantages of each.

16. EVALUATING FRANCHISE OPPORTUNITIES MP-26:   Evaluate franchise opportunities and select the business that’s right for you.

17. SMALL BUSINESS INSURANCE & RISK MANAGEMENT GUIDE MP-28:   This guide can help you strengthen your insurance program by identifying, minimizing and eliminating business risks.

18. HOW TO START A QUALITY CHILD CARE BUSINESS:  This comprehensive manual developed by child care professionals in both private and public sectors, explains the business and academic dimensions of operating a child care center.

19. CHILD DAY-CARE SERVICES MP-30:   An overview of the industry, including models of day-care operations.

20. HANDBOOK FOR SMALL BUSINESS MP-31:   Handy information for getting started – in a new publication developed by the SBA’s Service Corps of Retired Executives (SCORE).

21. HOW TO WRITE A BUSINESS PLAN MP-32:   What you need to know to write a good plan at the start. It can save your business down the line.

Cool, moist weather slows wildfire season in West

(AP) PHOENIX – Wildfires are usually raging by now in Arizona , but something odd happened this year.

As June drew to a close – typically the busiest part of Arizona’s wildfire season – the temperature fell and moisture was above normal, surprising fire managers who had expected an active season.

“The first part of summer we’ve really dodged a bullet in terms of our weather,” said Rick Ochoa, a fire weather meteorologist with the National Interagency Fire Center in Boise, Idaho. “We’ve had rainfall and the cooler temperatures really kept a lid on things.”

Similar weather has also led to fewer fires than normal across much of the West, he said. But the season is still early and parts of the West will heat up significantly at the end of this month, Ochoa said.

An above-normal fire potential is expected in portions of California and Washington later this month because they’ve missed out on spring rainfall and had quick snow melt-off. There’s also above-normal fire potential this month in parts of Texas, Louisiana and Mississippi.

States that likely will see below-normal Julys are parts of Arizona, Colorado, Nevada, New Mexico, Oregon and Utah.

Arizona and New Mexico’s fire seasons typically begin earlier than other parts of the West, wane when summer monsoon rains roll in and sometimes pick up again in the fall if rainfall is scant.

The rest of the Western fire season follows a more typical pattern, with peak fire season hitting in midsummer and early fall.

Arizona’s season has been below normal so far. The state had 990 significant wildfires that burned about 117 square miles so far this year. That’s compared to a five-year average of 1,800 wildfires that destroyed 357 square miles, according to the Southwest Coordination Center in Albuquerque, N.M.

New Mexico also has seen less activity than normal, with 730 wildfires consuming about 481 square miles. That’s compared to that state’s five-year average of 880 fires that burned about 585 square miles, according to the coordination center. 

From the beginning of the year through mid-May, southeastern Arizona, southern and eastern New Mexico and west Texas were experiencing fairly active seasons before moisture hit the area, said Chuck Maxwell, predictive services meteorologist for the center, which oversees those three states.

“What we really didn’t expect was for things to shut down in the second half of May and not come back again,” Maxwell said. “It’s a year without any widespread, long-term, big fires.”

He said less fire can be good and bad.

“We want to have regular fires of some intensity to burn out the stuff that’s there; we just don’t want to have catastrophic fires,” he said, adding that low-intensity burns renew the ecosystem and restore forests to their natural states.

Forest managers in the West are taking advantage of the break.

In northern Arizona’s Kaibab National Forest, for example, fire managers are letting a small lightning-caused fire continue to burn because it’s doing more good for the land than harm, forest spokeswoman Jackie Banks said.

The lower temperatures and moisture this June also allowed Kaibab managers to start a prescribed fire that burned three square miles.

“It’s been a good thing in so many ways because we’ve been able to reduce the risk of higher intensity fires instead of running around trying to put everything out,” she said. “It helps improve forest health, improve wildlife habitat, reduce some of those accumulations of fuels on the forest floor.”

Not everyone is benefiting from a slower wildfire season.

Seasonal firefighters and government contractors are getting no work or less work than they’re used to.

Beryl Shears, owner of Phoenix-based Western Pilot Service, said his 13 airplanes contracted by the government have flown 20 to 30 percent of the amount they flew in 2007 and about 40 percent of what they flew last year.

“It’s awfully hard to stay prepared when our pilots don’t fly as much, to be ready to fly in 15 minutes after sitting around day after day,” he said. But regardless of what type of season it is, Shears said, the government still pays his company to have the airplanes and pilots at the ready.

“Yes, we do make more money in big years,” he said, “but really when you think about it, it’s the best of both worlds for all of us. We make a livable income for pilots, employees and mechanics, and yet there’s no wildfire, so nothing burns.

“The cost to government agencies is less, and we’ll be here next year if its a more severe wildfire season.”

FIRE VICTIM WARNS OTHERS: GET RENTERS INSURANCE

(KVAL News – Oregon )  After a fire destroyed all of her family’s belongings, a Eugene-area woman is warning all renters to purchase insurance.

“You can’t save the sentimental things, of course, but at least if you have children, there is something” if you have insurance, said Rhea Chrismer. “You can replace their bedrooms again.”

A fire destroyed Chrismer’s rented house and garage last Monday, charring most of the family’s belongings. The cause of the fire has not been determined and the investigation is on pause unless new information surfaces, according to Heather Miller with Lane County Fire District 1.

Chrismer, boyfriend Micheal Kezer and Chrismer’s three children were not home. The family was renting the property on Territorial Road but did not have renters insurance.

According to a Farmers Insurance branch in Eugene , the average person will pay less than $200 a year for a renters insurance policy.

“We’re not going to let this stop our little family,” she said. “I’m learning good things come from bad things. You meet really good people.”

People like the passerby who saw smoke coming from the house Monday, searched the rooms for people and finding none, let the family’s dogs outside. The dogs survived.

People like the communities of Crow and Lorane, who have offered clothes and started fundraising efforts. If you would like to donate to the family, an account has been set up at the Selco Bank on Gateway Street. Mention the Kezer Family Fund.

To see a short video of this story, click here: http://www.kval.com/news/49463987.html

Be prudent about sharing vacation data online

(SFGATE.COM)  These days, kids and even many adults think nothing of telling the world – or at least their 795 closest friends – that they’re not at home by posting their whereabouts or vacation plans on Twitter, Facebook or other social media.

Israel Hyman, an Arizona video editor who says he has close to 2,000 people following him on Twitter and also uses Facebook “a lot,” recently was burglarized while he was in Kansas City.

“We had mentioned that we were going out of town for an extended period and even Twittered about the trip as we drove for three days,” he told an Arizona television station. While he was gone, video-editing equipment was stolen from his home. Although he is not sure his tweeting tipped off the burglars, he says he will be more careful in the future about what he shares online.

“People just don’t realize the kind of information they give out in social-networking sites can be used on its own or with other information to commit identity theft and other fraudulent activity,” says Paul Stephens, director of policy and advocacy with the Privacy Rights Clearinghouse.

Most social-networking operations let users restrict access to people they approve. But many people fail to take this important step, especially if they are seeking a wide audience or trying to look ultra-popular.

Others assume they are safe because they restrict access to the kind of friends they would share their vacation plans with in person. What they forget is that these friends may share that information. “There is nothing to stop them from showing it to someone else or doing a screen capture and sending it on to somebody,” Stephens says.

According to the British government Web site Get Safe Online, 13 percent of social-network users report posting friends’ pictures without their consent and 7 percent report posting friends’ contact information without consent. Those most likely to give away their friends’ information are 18- to 24-year-olds.

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Know your friends

If your kids tell you they are networking only with “friends,” beware. “What an adult thinks of as a friend and what a friend is in social media are two different things,” says Peter Spicer, communications manager with Chubb Personal Insurance.

Spicer says parents should remind their kids “not to post the fact that we are going on vacation. That’s a heads-up to criminals.” Tell them it’s OK to post pictures and talk about the trip after they’re home.

Joanne McNabb, chief of the California Office of Privacy Protection, says she hasn’t received any complaints from people who think they were robbed because they disclosed their whereabouts on social networks. But, she says, “It’s a risk in the online world just like in the offline world.”

Robbers have long been known to scour the newspaper for death or wedding announcements and target homes when families are likely to be at the funeral or on a honeymoon.

“It’s not that these Web 2.0 things are creating new crimes. They are providing some new vectors or venues for the crimes that can happen anyway,” McNabb says.

While you’re away

Stephens says vacationers also need to protect themselves against identity fraud when they’re away from home.

His Web site, www.privacyrights.org, offers these tips for travelers:

– Photocopy or make a list of the contents of your wallet. Keep it in a locked location at your hotel or with a trusted person at home whom you can contact if your wallet is lost or stolen.

– Don’t carry unnecessary credit cards, your Social Security card or other documents that could compromise your identity if lost or stolen. If you have a Medicare card, make a photocopy without the last four digits of your Social Security number.

– Carry two credit cards. If you carry only one and it is deactivated because of suspected fraud or the magnetic strip gets damaged, you’ll be in trouble until it is replaced.

– Use traveler’s checks or credit cards. Leave your checkbook in a secure locked place at home. Do not use debit cards (check cards). This reduces your vulnerability to having your checking account emptied while you are on vacation.

– When dining in a restaurant, try to keep an eye on your credit card. If the server removes your card from sight, he may be able to create a “clone” by using a portable card skimmer that will copy the information from the card’s magnetic strip.

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– If you are bringing your laptop, be careful when using it to access online banking or other password-protected services from Wi-Fi networks. Be sure to use Wi-Fi hotspots that are secure. For Wi-Fi tips, see links.sfgate.com/ZHHR.

– Don’t access sensitive information from a cybercafe or other public computer because keyloggers (software that can track your keystrokes) may be tracking you.

Vacation tips

– Don’t post your vacation plans or whereabouts on social-networking sites until you return.

– Ask the post office to hold your mail. Mail piling up in an unlocked box indicates to burglars that you are not home and puts you at risk for identity theft.

– Suspend (but please don’t cancel) your newspaper subscription.

– Ask a trusted neighbor to report suspicious activity around your house to the police and remove any free newspapers that pile up in your yard.

– Park a car in the driveway.

– Set your lights, TV or radio on a timer, preferably one that switches on and off at varying times.

– Have package deliveries sent to your office or make sure they won’t be left on your doorstep.

– Unplug toasters and other appliances; shut off the water to your washing machine.

– Don’t leave a voice-mail message saying you are out of town or your return date.

– If you must leave an out-of-office reply on your e-mail, don’t say you are on vacation or when you will return.

FENDER-BENDERS IN MICRO CARS CAN BE COSTLY

Ken Thomas (Forbes.com) Recent crash tests conducted by the Insurance Institute for Highway Safety indicate that even a minor accident in a minicar can require thousands of dollars to repair. On June 10 the institute reported that repairing damage to microcars in crashes of speeds as low as three to six miles per hour could cost from $474 to $3,701. The crash tests were conducted on the front and back bumpers and the front and rear corners of seven 2009 model year minicars. These cars have become more popular as a result of rising fuel costs in recent years. The Kia Rio sustained the most damage among the minicars, requiring $3,701 to repair the full front bumper. In the four tests the cost of repairing the Rio averaged $2,705. Of the seven vehicles, the Smart fortwo had the lowest average repair cost of $899.

Auto thefts in Valley drop; insurance rates could, too

Valley residents are more likely to see something in their driveways this morning: their cars.

In 2008, 25,794 cars were stolen in the metro area, according to National Insurance Crime Bureau data released this week. That’s a decline from 2007, when the number was 34,182. In 2006: 39,535.

The car-theft rate is one factor insurance companies use to set rates, which could mean lower costs for drivers, according to the Arizona Insurance Information Association.

The bureau’s Frank Scafidi says the drop in car thefts is the result of law enforcement, legislators and prosecutors taking the issue more seriously.

In 2003, the Arizona Automobile Theft Authority began funding bait-vehicle programs.

Bait cars, donated by insurance companies, are placed in high-theft areas and equipped with tracking devices and video cameras.

“Bait cars work,” Scafidi said. “They get the most prolific thieves off the street because there is audio and video (of the crooks).”

Phoenix / The Arizona Republic.          

Arizona’s Wildfires Risk for Homeowners

Phoenix , AZ , – As the drought in the Southwest worsens, the wildfire season in Arizona grows longer, burning more acreage and threatening private property in forested areas.

“The Arizona State Forestry Division estimates more than 4,000 homes, businesses, and other structures were threatened by wildland fires in the past three years,” says Ron Williams, executive director for Arizona Insurance Council (AIC). “Including autos, boats and other personal property, the economic losses in 2009 could be in the millions of dollars.”

Now, Arizona property owners can access wildfire safety and property saving tips online at the AIC website at www.azinsurance.org/WFLinks.html.

Arizona Firewise, a cooperative effort of state and federal forest, wildfire and wildlife organizations, has published a booklet – “Living With Wildfire: Homeowner’s Firewise Guide for Arizona.” It is a comprehensive review of wildfire behavior, survivable space and Firewise techniques, checklists for various landscaping and housing materials, and emergency guidelines.

In addition, the property and casualty insurers of Arizona , represented by AIC, suggest thoroughly reviewing your homeowner’s policy.

An annual insurance policy check-up is an essential factor in protecting your home and belongings any time of year. Home and business owners should contact their agent or insurance company to make certain they have the proper level of coverage.

Key points to go over with your insurance company or agent include:

• Does the policy cover the current costs of rebuilding your house? The increases in cost for lumber, steel, concrete and copper have significantly outpaced other products. Those price increases affect what insurers pay to repair and rebuild homes and the costs of satisfying those claims is shared by all homeowner insurance consumers.
• Does your policy provide coverage for additional living expenses, such as hotel bills and restaurant meals for the time you are evacuated from your home and/or while your home is being rebuilt?
• Is your insurance company or agent aware of any improvements you have made on your home or business? Updating a kitchen, new carpeting or installing a swimming pool adds to the value of your home. The same applies to business improvements.
• Have you upgraded your home electrical system or plumbing system, or installed anti-theft alarms or fire sprinklers? These improvements could help reduce your insurance premium, depending on your insurance company’s business practices.

These and other insurance tips are available at AIC’s website at www.azinsurance.org.

DROWSY DRIVERS: A WAKE-UP CALL

SLEEP DEPRIVATION CARRIES RISKS SIMILAR TO DRUNKEN DRIVING’S

The National Highway Traffic Safety Administration reports that drowsy driving is a factor in over 100,000 crashes a year, resulting in at least 1,550 deaths and 40,000 injuries. Darrel Drobnich, chief program officer of the National Sleep Foundation, estimates that the figures are considerably higher: 5,500 deaths and 71,000 injuries a year. Efforts are underway to make people more aware of the problem, which, unlike drunk driving, cannot be easily tested. Carol Ash, medical director of a sleep program at Somerset Medical Center, said, “Years ago, we didn’t think anything of getting in a car after having a few drinks. Sleep deprivation has the same impact. Your judgment becomes impaired, whether you realize it or not. We’re starting to understand that drowsy driving is the same as driving intoxicated.” According to a poll conducted by the National Sleep Foundation, 54 percent of adult drivers said they had driven while drowsy and 28 percent said they had fallen asleep at the wheel during the past year.

Larry Copeland. USA Today. 2009/04/02. Page A3.

Homeowners insurance losses are climbing; Cost Drivers List

The following are true of both residential and commercial buildings.  I believe this information can help us all keep our insurance costs down.

Goal: Affordable Homeowners Insurance

Affordable homeowner insurance is a major concern for insurance companies and their customers. In recent years, the factors that determine the cost of insurance have forced premiums higher.

Cost Driver Number 1

Building Materials, Home Repairs: In recent years, increases in cost for lumber, steel, concrete and copper have significantly outpaced other products measured by the Consumer Price Index. Those price increases affect what insurers pay to repair and rebuild homes and the costs of satisfying those claims is shared by all homeowner insurance consumers.

Cost Driver Number 2

Water Claims: Insurers have paid more money to satisfy claims caused by water damage than any other single cause.

Cost Driver Number 3

Crime : Arizona continues to rank as having one of the highest crime index’s in the United States. In its latest analysis of crime, the Arizona Criminal Justice Commission reported that Arizona’s property offense rate was 36% higher than the national average in 2005. For every 100,000 people who live in Arizona, 5,168 are victimized by crime annually.

Cost Driver Number 4

Windstorms: Windstorms are an annual occurrence in Arizona, typically occurring during the “monsoon season.” These strong winds, usually accompanied by hail or rain, cause millions of dollars of damage to Arizona homes each year. In 1996, one monsoon storm caused $160 million in damage to Arizona homes.

Cost Driver Number 5

Fire/Arson: The top five causes of home fires are cooking mishaps, heating equipment malfunctions, arson, faulty home-and-appliance wiring, and wildfires.

Wildfires have become more serious in recent years as increased development borders forests and deserts in a growing number of Arizona communities. Oftentimes, these unincorporated areas lack the necessary regulations to protect homes from wildfires.

Arson is also increasing. While it is a difficult crime to successfully prosecute, government statistics indicate arson may be responsible for a third of all home fires and in most of those cases, the homes are total losses.

Sources: Insurance Information Institute; Phoenix Fire Department; Office of Federal Housing Enterprise Oversight; Federal Bureau of Investigation; and U.S. Department of Labor, Bureau of Labor Statistics.

Homeowners insurance losses are climbing; Cost Drivers List

The following are true of both residential and commercial buildings.  I believe this information can help us all keep our insurance costs down.

Goal: Affordable Homeowners Insurance

Affordable homeowner insurance is a major concern for insurance companies and their customers. In recent years, the factors that determine the cost of insurance have forced premiums higher.

Cost Driver Number 1

Building Materials, Home Repairs: In recent years, increases in cost for lumber, steel, concrete and copper have significantly outpaced other products measured by the Consumer Price Index. Those price increases affect what insurers pay to repair and rebuild homes and the costs of satisfying those claims is shared by all homeowner insurance consumers.

Cost Driver Number 2

Water Claims: Insurers have paid more money to satisfy claims caused by water damage than any other single cause.

Cost Driver Number 3

Crime : Arizona continues to rank as having one of the highest crime index’s in the United States. In its latest analysis of crime, the Arizona Criminal Justice Commission reported that Arizona’s property offense rate was 36% higher than the national average in 2005. For every 100,000 people who live in Arizona, 5,168 are victimized by crime annually.

Cost Driver Number 4

Windstorms: Windstorms are an annual occurrence in Arizona, typically occurring during the “monsoon season.” These strong winds, usually accompanied by hail or rain, cause millions of dollars of damage to Arizona homes each year. In 1996, one monsoon storm caused $160 million in damage to Arizona homes.

Cost Driver Number 5

Fire/Arson: The top five causes of home fires are cooking mishaps, heating equipment malfunctions, arson, faulty home-and-appliance wiring, and wildfires.

Wildfires have become more serious in recent years as increased development borders forests and deserts in a growing number of Arizona communities. Oftentimes, these unincorporated areas lack the necessary regulations to protect homes from wildfires.

Arson is also increasing. While it is a difficult crime to successfully prosecute, government statistics indicate arson may be responsible for a third of all home fires and in most of those cases, the homes are total losses.

Sources: Insurance Information Institute; Phoenix Fire Department; Office of Federal Housing Enterprise Oversight; Federal Bureau of Investigation; and U.S. Department of Labor, Bureau of Labor Statistics.